| Despite talks about growth of the economic situation, unemployment figures are still growing in the US. This trend might shake the Democrats reputation.
Although economic fall is claimed to relax, the unemplyment rate is anticipated to rise and exceed 10% during the year of 2009. Growing poverty and skimpy economic growth might give even more grounds for accusing Barack obama and parliamentarian Democrats of abuse of public money. If the situation persists, the government which has been justifying its spending by the efforts to create new working positions and improve the economic situation, will endure difficult times, particularly during the midterm elections of November 2010.
The economic policy of Barack obama supposes the investment of 787 billion dollars in renewable energy, healthcare, education and vocational training. The government asserts that this step will help to stabilise the economy and create working places. This optimistic vision, however, is not shared by financial experts. By their estimates, the unemployment will exceed 10% in 2010, and its return to the pre-crisis level (about 5%) can be expected not sooner than in a few years. The anticipated development of the employment situation is going to severely affect children, unskilled workers, immigrants, African and Latin Americans.
Lawrence Mishel, president of the Economic Policy Institute, is said to allege that the rate of structural unemployment will cause enormous damage to many communities and verbalised his astonishment with the relaxed position of American citizens. According to statistics, since December 2007 the quantity of jobs in the U.S. Has decreased by about 5.7 million. Although recent months demonstrated a slight improvement of the employment situation and rise in expenditure, the trend continues, and the quantity of jobs still diminishes.
Making things worse, American companies take pains to re-employ workers and introduce new technologies into production, thus making their employees redundant. Moreover, the economic decline nearly ruined the financial sector and the auto industry. Even government intervention fails to restore nany of the jobs in these sectors.
"The rate of unemployment has not reached its peak, it will persist," alleges Mishel. The political debate appears to indicate that the recession is behind us, but we still need to discuss ways out of the actual crisis, i.e. to recreate jobs." |
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